Eagle Bancorp, Inc. Announces 68% Increase in Earnings for the First Nine Months of 2005 With Assets Exceeding $647 Million
17 Oktober 2005 - 2:00PM
PR Newswire (US)
BETHESDA, Md., Oct. 17 /PRNewswire-FirstCall/ -- Eagle Bancorp,
Inc. (NASDAQ:EGBN), the parent company of EagleBank, today
announced net income of $5.5 million for the nine months ended
September 30, 2005, compared to $3.3 million for the first nine
months of 2004, an increase of 68%. On a per-share basis, the
Company earned $0.77 per basic share and $0.73 per diluted share
for 2005, as compared to $0.46 per basic share and $0.44 cents per
diluted share for 2004. (Logo:
http://www.newscom.com/cgi-bin/prnh/20050927/EAGLEBANKLOGO ) For
the third quarter of 2005, the Company earned $2.3 million, as
compared to $1.0 million for the third quarter of 2004, a 127%
increase. On a per-share basis, the Company earned $0.32 per basic
share and $0.30 per diluted share for the third quarter of 2005, as
compared to $0.14 per share for both basic and fully diluted shares
for the same period in 2004. "Our growth in assets, loans and
deposits continues and was coupled with favorable financial
performance for Eagle Bancorp for the first nine months and third
quarter of 2005," noted Leonard L. Abel, Chairman of Eagle Bancorp
and Ronald D. Paul, President and CEO of Eagle Bancorp. "We are
quite pleased with our balance sheet growth, and a continuing
favorable net interest margin result. Furthermore, non-interest
revenue has shown increases and productivity, as measured by the
efficiency ratio, has improved in 2005 over 2004. We are committed
to a balanced approach to managing the Company, which includes
focusing on solid asset quality and making investment in
infrastructure to support a growing organization," added Abel and
Paul. For the nine months ended September 30, 2005, the Company
reported an annualized return on average assets (ROAA) of 1.23% as
compared to 0.92% for the first nine months of 2004; while the
annualized return on average equity (ROAE) was 12.07%, as compared
to 7.91% for the same period in 2004. Several factors contributed
to the favorable financial results. Both loan and deposit activity
were strong in the period, and together with an improved net
interest margin, resulted in the Company's net interest income
increasing to $20.9 million from $14.0 million for the first nine
months of 2005 over 2004, a 49% gain and to $7.5 million from $5.0
million for the third quarter of 2005 as compared to the same
period in 2004, also a 49% gain. The Bank's asset/liability
management position has allowed it to benefit from the increase in
market interest rates in the January to September period. For the
first nine months of 2005, the net interest margin was 5.01% as
compared to 4.27% for the first nine months in 2004. Non-interest
income for the first nine months of 2005 was $3.2 million compared
to $2.6 million in the first nine months of 2004, a 22% increase.
This increase in non-interest income was due primarily to increased
amounts of gains on the sale of SBA loans and related service fees,
where EagleBank is the leading community bank lender in its
marketplace and to higher net investment gains. For the three
months ended September 30, 2005, noninterest income increased 78%
to $1.2 million from $697 thousand in the same period in 2004. The
primary reason for the increase was $269 thousand of net investment
gains in the third quarter of 2005, as compared to a $60 thousand
net investment loss for the same period in 2004. Other increases in
the third quarter were due to increases in gains on the sale of SBA
loans and related service fees. Non-interest expenses were $14.1
million for the first nine months of 2005, as compared to $11.1
million for 2004, a 27% increase. The primary reasons for this
increase were increases in personnel and related benefit cost
increases, higher incentive compensation, increased occupancy cost,
due in part to new banking offices, and higher marketing, data
processing and professional fees associated with a larger
organization. In spite of higher levels of noninterest expenses,
the very strong growth in revenue allowed the efficiency ratio to
improve for the first nine months of 2005 to 58.52% from 66.74% for
the same period in 2004. For the three months ended September 30,
2005, noninterest expenses increased 19% to $4.7 million from $4.0
million for the same period in 2004. This increase was attributed
to the same factors mentioned above for the nine month period.
Asset quality remained favorable in the period. The Company
recorded net charge-offs of just $53 thousand for the first nine
months of 2005 (.02% of average loans outstanding), as compared to
net recoveries of $39 thousand for the first nine months of 2004.
The ratio of non-performing loans to total loans was .04% at
September 30, 2005, as compared to .71% at September 30, 2004. The
provision for loan loss was $1.3 million for the first nine months
in 2005 as compared to $457 thousand for 2004; the increase due
substantially to growth in the loan portfolio over the past twelve
months. At September 30, 2005, the allowance for credit losses
represented 1.09% of loans outstanding, as compared to 1.15% at
September 30, 2004. For the three months ended September 30, 2005,
the provision for loan losses was $424 thousand as compared to $227
for the third quarter in 2004. At September 30, 2005, total assets
were $647 million compared to $508 million at September 30, 2004, a
27% increase. Total deposits amounted to $546 million at September
30, 2005, a 33% increase over deposits of $411 million at September
30, 2004, while total loans increased to $504 million at September
30, 2005, from $364 million at September 30, 2004, a 38% increase.
Eagle Bancorp paid a dividend of $.07 per share for the third
quarter of 2005. The quarterly dividend commenced in the first
quarter of 2005. Eagle Bancorp is the holding company for EagleBank
and its subsidiary, Eagle Land Title, LLC. EagleBank commenced
operations in 1998. The Bank is headquartered in Bethesda,
Maryland, and conducts full service commercial banking services
thru eight offices, located in Montgomery County, Maryland and
Washington, D.C. A lease has been executed for a new community bank
office in Chevy Chase, Maryland which is expected to be opened in
the second quarter of 2006. The Company focuses on building
relationships with businesses, professionals and individuals in its
marketplace. Forward looking Statements: This press release
contains forward looking statements within the meaning of the
Securities and Exchange Act of 1934, as amended, including
statements of goals, intentions, and expectations as to future
trends, plans, events or results of Company operations and policies
and regarding general economic conditions. In some cases,
forward-looking statements can be identified by use of words such
as "may," "will," "anticipates," "believes," "expects," "plans,"
"estimates," "potential," "continue," "should," and similar words
or phrases. These statements are based upon current and anticipated
economic conditions, nationally and in the Company's market,
interest rates and interest rate policy, competitive factors and
other conditions which by their nature, are not susceptible to
accurate forecast and are subject to significant uncertainty.
Because of these uncertainties and the assumptions on which this
discussion and the forward- looking statements are based, actual
future operations and results in the future may differ materially
from those indicated herein. Readers are cautioned against placing
undue reliance on any such forward-looking statements. The
Company's past results are not necessarily indicative of future
performance.
http://www.newscom.com/cgi-bin/prnh/20050927/EAGLEBANKLOGO
http://photoarchive.ap.org/ DATASOURCE: Eagle Bancorp, Inc.
CONTACT: Ronald D. Paul of Eagle Bancorp, Inc., +1-301-986-1800 Web
site: http://www.eaglebankmd.com/
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